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Virgin to go ahead with loyalty program
Reports from Queensland over the weekend, confirm that the Board of Virgin Blue has approved proceeding with its long awaited frequent flyer program.
Virgin Blue CEO Brett Godfrey has refused to give details of the programme, but did say that it would “blow away” some of the reasons travellers gave for not wanting to fly on the airline.
He said, “We have an excellent product, but if you listen to some people who have a million frequent flyer points with Qantas we are an awful airline,” Mr Godfrey told the Brisbane congress of the Finance and Treasury Association.
He added, “Research showed many regular travellers rated frequent flyer points highly, with programs coming in at the top of a one to 10 scale, while price was at the bottom”.
“We do not have a frequent flyer program, and that is the honest reason why people tell their employers that it is terrible that the boss forces them to fly Virgin Blue,” he said.
Mr Godfrey said the Federal Government – which is reviewing aviation policy – had to pull its head out of the sand and recognise that international aviation was not a level playing field.
“Look at the Tasman,” he said. “This crossing was a national asset shared by Australia and New Zealand, but it has been trashed because it is serviced by 13 carriers, most of them foreign”. “They are propped up by their own governments and have tax assets”. “The sad thing will be what will happen to Australian aviation, especially the international side, if the Federal Government goes down the path of full liberalisation without a really honest level playing field.”
Mr Godfrey said that while the Australian aviation industry was buoyant, he expected fuel costs and bad management would drive five of the major US carriers into Chapter 11 bankruptcy protection by January.
Report by The Mole
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